According to a recent study by Trulia, in 30 out of the 100 top markets in the country, saving for a 20% down payment is actually faster without a college degree.
“In those markets, a household with a college degree isn’t making that much more than a household without,” says Ralph McLaughlin, Trulia’s housing economist. “The burden that student debt brings to a household with a college degree makes it slower to save for a down payment.”
A home is usually the biggest purchase a person will make, and Millennials have been notably shy when it comes to buying activity, with student loans being the obvious culprit. Mounting student loans can make it more difficult to save the cash necessary to make a down payment on a first home.
Countering expectations, Millennials without a college degree have a greater
ability to save for a down payment at least one year faster than college graduates
in Columbia, SC; El Paso, TX; Las Vegas, NV and Daytona Beach, FL.
California stands out as a big exception. Ranked seventh out of the 10
communities where it’s hardest to save for a down payment, those with a college
degree have a slight advantage. But while entry-level salaries are generally high,
the state has some of the highest home prices in the nation and they continue
On the bright side, there are still many markets where saving for a down payment
can take a young person less than seven years, with or without a degree. Detroit
tops the list as the most inexpensive city, with an average wait time of 4.1 years for
buyers with a degree and 5.3 years for those without.